Over the last six years homeownership has lost some of its allure. As people suffered through the housing burst they started to wonder if owning a home was truly a good investment. Many new buyers turned to renting in the midst of the housing burst. Little did they realize they were still paying a mortgage, just not their own.
As a newcomer to Green Bay, it is difficult to get to know the different parts of the city. What are some good neighborhoods, where the safest neighborhoods are for kids and families, what proximity are the shopping centers, grocery stores, golf courses, and local attractions? All these are questions that prohibit a large amount of people from purchasing their home, with valid reasons. This is why working with a knowledgeable real estate agent holds their true value. A value that can be life changing and well worth it, financially.
Whether you are renting or owning, you are still paying a mortgage. If it’s not yours, it’s your landlords. Homeowners net worth as much as 30 times that of a renters. This percentage is based on the fact that you now have an asset to your name, your home. Renting is still a viable option for some, but what if someone were to tell you that you could be paying the same or less amount each month, yet paying down your mortgage? Would you believe them, would you even do your research to see if it is true? Some will, many won’t. That’s what we’re trying to change. See the housing market in Green Bay provides one with many options. While one can rent for $1000.00 each month, the same person could purchase a home that is valued at $150,000 for the same payment. Now let’s say you wanted to rent and executive unit for $2000.00 each month, which puts your purchase price upwards of $250,000. That’s approximately a 3000 square foot home compared to your approximate 1850 square foot rental. Which would you rather have. More space and paying down your own home, or less space and paying your landlords mortgage.
Bottom Line: While renting is a viable option, and many can provide valuable reasons to rent. Owning a home is financially smarter for short or long term investments. Wouldn’t you rather pay down your mortgage instead of your landlords?
Volunteer Blogger
Justin Scott, Executive Mortgage
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